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China Solar & Clean Energy Solutions, Inc. Reports Full Year 2008 Financial Results and Announces New Chief Operating Officer and Chief Technology Officer.

Article Excerpt
- FY08 Revenue Increases 44.8% to $53.7 Million -



- Mr. Edward Chan Named Chief Operating Officer - - Dr. Weizhong Xiang Named Chief Technology Officer -

BEIJING, April 16 /PRNewswire-Asia-FirstCall/ -- China Solar & Clean Energy Solutions, Inc. ("CSOL" or "China Solar" or the "Company") (BULLETIN BOARD: CSOL) , a premier manufacturer and distributor of solar water heaters, renewable energy solutions, and space heating devices in the People's Republic of China, today reported its financial results for the year ended December 31, 2008 and announced two new additions to its senior management team -- Mr. Edward Chan and Dr. Weizhong Xiang as Chief Operating Officer and Chief Technology Officer, respectively.

Full Year 2008 Results

Revenues for 2008 increased 44.8% to $53.7 million, compared to $37.1 million for 2007, driven by higher revenues from the Heat Pipe and Energy-saving segments. Heat Pipe revenues increased 136% to $16.6 million from $7.0 million in 2007, as CSOL did not begin to sell Heat Pipe related products until its acquisition of Tianjin Huaneng on July 1, 2007, and therefore, Heat Pipe revenue in 2007 only reflected 2H07 total sales. Energy-saving revenues increased 169% to $9.1 million, versus $3.4 million in 2007, as the Company completed its acquisition of Shenzhen PengSangPu ("SZPSP") in March 2008. During the year, revenues for the Solar Heater/Biomass Stove/Boiler ("Solar-Biomass-Boiler") segment decreased by $1.6 million to $25.1 million in 2008, as the Company accounted for the sales of certain products of this segment under a new fourth segment and, to a lesser extent, due a decrease in the selling prices as a result of increased competition. In 2008, the Company added a new revenue segment named Solar Heat Collector and Others and recorded $3.0 million of revenues in this segment, as compared to zero in 2007.

Gross margin for 2008 was 17.4%, compared to 22.4% in 2007, primarily due to a decrease in the selling prices as a result of increased competition in the industry. Operating expenses increased to $9.1 million for 2008 as compared to $5.1 million for 2007, primarily due to higher marketing and promotional expenses and higher salary and benefits associated with the expansion of the sales force. While recurring administrative expenses improved in 2008, the Company incurred one-time liquidated expenses of approximately $0.5 million paid to certain investors due a delay in effecting a registration pursuant to its agreement with such investors in its February 2008 private placement. The Company also recognized higher administrative expenses attributable to the consolidation of SZPSP and professional fees associated with the private placement.

Operating income was $0.2 million for 2008, as compared to $3.2 million for 2007, and operating margin was 0.5% in 2008, as compared to 8.6% in...

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